DEBOTTLENECKING OF SARULLA GEOTHERMAL PLANT

Jakarta, 11 April 2013 – Today the Vice President of the Republic of Indonesia witnessed the handing over of the approval on the Amendment of Energy Sales Contract (ESC) and Joint Operating Contract (JOC) by the Ministry of Energy and Mineral Resources (MEMR) to PLN and Pertamina Geothermal Energy and the handing over of the Business Viability Guarantee Letter (BVGL) from the Ministry of Finance (MoF) to the consortium Sarulla Operations Limited (SOL) on the development of Sarulla Geothermal Power Plant 3×110 MW.

Sarulla is the biggest power plant in the Phase II of the Fast Track Program to develop 10.000 MW electricity generation, whereas almost 50% of its capacity (4952 MW) comes from geothermal energy. Sarulla is the world’s largest single-contract geothermal power plant and will substantially expedite the electrification target in Indonesia. The project is estimated to require US$1.5 billion of investment financed by private sector participation – led by Medco Energy in a consortium with Itochu, Kyushu, and Ormat – encompassing 20% equity and 80% loan financing from Japan Bank for International Corporation (JBIC), through an independent power producer (IPP) scheme.